Your company is considering an expansion into a new product rea The company has colectled the following information about the proposed product. - The project has an anticipated economic life of 5 years. - The company will have to purchase a new machine to produce the prodict The nactire has an up -front cost (Year 0 ) of $3,000,000. - The machine will be depreciated on a 3-year MACRS- Iffe basis idepreciation will be talan in Years 14 and depreciation rates are: Year 1=33%; Year 2=45%; Year 3=15%; and lez 4= 7%). - The company anticipates that the machine will last for at least fve yeas, and tatat ater fre years, the machine will be sold for $400,000 (ore-tax). - If the company goes ahead with the project, it will have an effecton the compon/5 net opaating working capital. At the outset, Year 0 , current assets will increase by 4550,000 , whle accants payable will increase by $200,000 and accuals will increase by $150,000. At lear 5 the net operating working capital will be recovered after the project is conpleted. - The project is expected to produce revenues of $2,200,000 the first yex. 525000,000 the sacand and third years, $2,000,000 the fourth year, and $1,600,000 the finalyes. - Operating costs (excluding depreciation) are expected to be equal to 50 percat of seler raeve - The company's interest expense each year will be $120,000. - Because of synergies, the new project is expected to increase the atter-tar assh fous of the company's existing products by $40,000 a year (Years 1.5 and this sic considered to be incremental to this particular project. - The company's overall WACC is 5 percent. However, the proposed proiect is nore isily tan te average project, leading the firm to use a WACC of 9 percent for this proect. The company's tax rate is 40 percent. termine the NPV for this project